AMD's Foundry Spinoff Gets Official

Call it the dawn of a new era or the beginning of the end, but however it turns out, AMD has officially closed the deal to finalize its processor manufacturing spinoff. Previously coined The Foundry, the new company will now be called Globalfoundries and led by former AMD executives.

"With the close of this historic transaction, AMD and its committed partners have conceived two strong industry-leading companies capable of charting future courses that will dramatically improve the technology industry,” said Dirk Meyer, president and chief executive officer of AMD. "Our ‘Asset Smart’ strategy is about more than providing AMD with long term access to world-class, leading-edge semiconductor manufacturing that is foundational to our growth strategy. It is about transforming the industry."

The finalized deal improves AMD's cash position by about $825 million, and as previously reported, the spinoff will be responsible for AMD's manufacturing needs. Globalfoundries also said it will offer an expanded roadmap of technologies to third-party customers, giving them early access to volume chip production when traditionally new technologies would be limited only to high-end microprocessor makers.

A new $4.2 billion manufacturing facility at the Luther Forest Technology Campus in Saratoga County, NY is also being planned. The facility will focus on 32nm and smaller technologies, and according to Globalfoundries, it will be the only independently-managed, advanced semiconductor manufacturing foundry in the U.S.